Business director of Dutchie’s pleads guilty to Employment Standards Act offences

Guilty plea in Dutchie's case The owner of a Kitchener grocery store has plead guilty to 13 charges under Ontario's Employment Standards Act. Jeff Pickel has the details.

The business director of Dutchie’s Fresh Market, a Waterloo Region-based grocer, has pleaded guilty to more than a dozen offences.

Ontario’s Ministry of Labour confirmed Tuesday that Michael Renkema plead guilty to 13 offences.

They relate to sections of the Employment Standards Act (ESA) and, specifically, the failure to comply with an order or direction from the Ministry of Labour. The province cited section 132, contrary to section 103 and section 136 of the ESA.

Section 132 states anyone contravening the Act could face a maximum fine of $100,000 or up to 12 months imprisonment.

The ESA also sets out rules for corporations caught flouting the rules multiple times.

If a corporation has previously been convicted under the ESA, a second offence could result in a fine of up to $250,000. Fines for subsequent infractions could be as much as $500,000.

Section 136 of the ESA specifically addresses the liability the director of a corporation faces if found guilty of an offence. According to the provincial government’s website, a director could be fined up to $50,000.

Both Renkema and Dutchie’s were initially charged with 23 ESA offences earlier this year. It is unclear what the status of the remaining cases are.

Long list of claims

A Freedom of Information Request, filed with the Ministry of Labour, has revealed a long list of allegations against Dutchie’s.

A total of 72 claims have been made since 2018.

They allege a number of wage violations, including termination of pay, unpaid overtime wages and inappropriate wage deductions.

The allegations also included concerns with the right to disconnect from work, limits on hours of work, electronic monitoring and reprisals.

In 40 of the claims, the Ministry of Labour issued an “order to pay wages,” however, the documents showed none of those orders were satisfied.

Five of the claims were settled, while one remains active.

The FOI also included grievances filed between April 2018 and April 2024:

In all, 29 claims were filed against the Dutchie’s location on Bruce Street in Kitchener, while 43 were filed against another business on Corrie Crescent in Waterloo.

History of controversy

Multiple former employees have shared stories about what it was like to work for Dutchie’s.

In March of this year, CTV News spoke to a group of four Ukrainian immigrants who had worked at the grocer, who claimed they weren’t paid their full wages. They said they were missing thousands of dollars in income.

Over the following weeks, dozens more shared similar stories about the grocer.

More than 10 businesses and vendors also told CTV News that they had not been paid for their services. Some said their relationship with Dutchie’s started well, but things quickly began to sour as invoices went unpaid and reminders were ignored.

Last month, Ontario passed new employment legislation meant to support frontline workers and crack down on bad actor employers.

The government said penalties were increased for employers who violate the ESA, but the NDP’s Labour Critic Jamie West called it “a little bit of virtue signaling.”

The new law doubled the maximum fine for wage theft from $50,000 to $100,000.

“I couldn't find a record of the member using the maximum of the $50,000 in the first place,” said West, adding, “if you don't implement the maximum fine, the lower one, then double it, triple it, add seven zeroes, you're sort of wasting everyone's time and pretending you're standing up for workers.”